Shell: Europe could face fuel rationing due to war in Iran

Europe may face the need to ration gasoline, diesel, and other fuels as early as April if the Strait of Hormuz remains closed to tanker traffic, according to the head of the largest European oil company, Shell, Wael Sawan, speaking at a conference in Texas.

“South Asia was first to get that brunt. That’s moved to south-east Asia, north-east Asia and then more so into Europe as we get into April,” said Shell executive Wael Sawan. He noted that the price of aviation fuel has already doubled, with diesel expected to rise next, followed by gasoline as the summer season approaches, bringing increased car travel in the U.S. and Europe.

Sawan’s assessment was supported by Germany’s Minister of Economics, Katherina Reiche. At the same conference, she said that an energy shortage could become apparent at the end of April or in May if the conflict in the Middle East does not end. According to the minister, Germany made a major mistake by phasing out nuclear energy, and part of the solution could be increasing gas imports.